Are you looking to make some extra cash online? Affiliate marketing is a proven way to achieve that goal.
Affiliate marketing allows anyone to earn money by promoting products they love. You just need an internet connection and a platform to share your recommendations.
This guide will show you how to begin your affiliate journey. You’ll find useful tips and examples of popular affiliate programs to help you start and succeed.
What is affiliate marketing?
Affiliate marketing is when people make money promoting products for a retailer. Creators, influencers, and entrepreneurs share links to stores or products. These links track who clicks on them.
Most affiliates get paid when someone buys something. Sometimes, they also get paid for leads, free trial signups, clicks, or app downloads.
An affiliate network connects affiliates with brands. It also gives tools to create and manage these special links.
Lately, affiliate marketing has become a popular way to make money online. It’s a great option for creators, entrepreneurs, and anyone looking for a side hustle.
How does affiliate marketing work?
Many affiliate programs are free to join. These programs let people or businesses promote and sell another company’s products for a commission on each sale.
The affiliate earns money whenever someone buys through their special link.
Here’s how affiliate marketing works:
- An affiliate shares a link on their blog, email, or social network.
- Someone clicks the link.
- That person makes a purchase.
- The affiliate network tracks the sale.
- The affiliate gets paid a commission.
Commission rates differ by industry, product, and agreement between the affiliate and the brand.
Low-cost, high-volume niches like accessories might earn 10% per sale. High-ticket items in kitchen or home improvement can offer more than 30%.
Successful affiliates can negotiate better deals with partners for higher percentages. Some programs offer a flat rate per sale instead of a percentage.
Types of affiliate marketing
Unattached affiliate marketing
Unattached affiliate marketing is when the affiliate acts as a general advertiser. They aren’t tied to any specific niche, product, brand, or industry, and they might promote a wide range of products to different audiences.
Unattached affiliates often use pay-per-click (PPC) ads to reach customers on search engines and social media platforms.
Related affiliate marketing
Related affiliate marketing involves promoting products or services that fit your audience’s interests. Affiliates in this category may be influencers who have built a following through blogs, YouTube, TikTok, or other content platforms. This makes them trusted sources for recommending products.
Involved affiliate marketing
Involved affiliate marketing means making content that highlights a product or service. This might be a how-to guide, a demonstration, or a detailed review showing its benefits.
Many involved affiliates become known for their honest, impartial recommendations. Their audience’s trust helps them run a sustainable affiliate marketing business.
The pros and cons of affiliate marketing
Before you start as an affiliate marketer, you should know about the good and the bad. The rewards may sound amazing, but this venture doesn’t come without risks.
Affiliate marketing pros
Low investment and risk
Joining an affiliate program usually doesn’t cost anything. Once you have an audience, you can start earning money by promoting a product without needing more investment. This can lead to passive income from commissions.
Simple to execute
Affiliate marketers have a simple task at hand: refer customers to your partner retailer. The business model lets you concentrate on marketing while the retailer handles tasks like product development and order fulfillment.
Potential to scale
Successful affiliate marketing can boost income without hiring extra staff or using more resources. Affiliates can showcase new products to their audience, secure better commission rates, or reinvest their earnings to expand their reach.
Affiliate marketing cons
Limited control
Affiliates have to follow the rules set by the affiliate program. This might include limits on how you can promote a product.
Another downside is the commission-based earnings. You only get a small part of each sale. If you’re good at referring customers, you might negotiate better commissions or bonuses. You could also get access to special marketing content for your audience.
Takes time
Affiliate marketing isn’t a quick way to get rich. Building an audience and gaining influence takes time and dedication. It might take years of creating and sharing content before you see a steady income.
Who should become an affiliate marketer?
Affiliate marketing has low overhead costs and doesn’t require technical expertise. With just a website and some effort, you can start earning.
Still, it’s good to evaluate if it’s right for you. Here are three signs that affiliate marketing could be a good fit:
You’re a content pro
If you’re great at working with platform algorithms and reaching lots of users, affiliate marketing might be a good fit for you.
Many affiliate marketers get referrals by optimizing their websites to rank high on search engines. Others excel at creating viral content for TikTok or YouTube.
You have an engaged audience
If you’ve built an engaged following, you might be in a great spot for affiliate marketing. This could be a large general audience or a tight-knit community of dedicated fans.
For example, a tech blog could partner with products that match its audience’s interests, like smart home devices, software subscriptions, or gaming accessories.
You’re a trusted expert
If you’re an expert in niche products, you can use that expertise to thrive in affiliate marketing.
For example, a travel blog could provide detailed reviews of luggage, travel gear, or booking services, helping readers choose the best options for their trips. Sharing educational content is a great way to nudge customers to visit partner websites.
How affiliate marketers make money
When you join affiliate programs, you’ll come across different ways you can earn money. These are often called pricing structures, payout models, or conversion types.
Each model defines what action by the user will earn you a commission. For instance, promoting a digital course might aim for a sign-up, while promoting gadgets would focus on making a sale.
A lot of programs use last-click attribution. This means the affiliate who gets the final click before the purchase gets full credit for the sale.
5 ways affiliates get paid
- Per click. Affiliates earn money for every click on their affiliate link. Big companies use this method to boost brand awareness.
- Per sale. Affiliates get a commission for each sale made. It’s common for e-commerce offers.
- Per action. Payment is received for specific actions like newsletter signups, contact requests, or form submissions. These actions help build a customer base.
- Per install. Affiliates are paid for every app or software installation generated. This is popular in the tech industry.
- Per lead. A commission is earned whenever a lead is generated. It’s great for businesses looking to grow their customer list.
How much do affiliate marketers make?
Data from 2023 shows most affiliates earn at least $1,000 a month from promoting links on social media. Add a website or other channels, and it’s clear affiliate marketing can be a full-time job.
According to Payscale, the average annual salary for an affiliate marketer is over $56,000, based on more than 7,000 profiles. Many earn much more.
The bigger your audience, the more you can make. But even a small group of high-value customers can be very profitable.
Earnings depend on the niche. Business-related programs pay higher commissions than books, media, or clothing.
Also, think about the conversion rate—the chance of a successful referral. Balance the referral value with the effort it takes.
How to start affiliate marketing in 4 steps
To help you start off on the right foot, here are four simple steps to get started with affiliate marketing.
1. Identify your niche
When it comes to the niche, you’ll have two main choices:
- Choose a niche you’re passionate about
- Pick a niche based on audience needs
Going with something you’re familiar with helps you seem genuine and trustworthy. It also makes it easier to choose products to promote.
Imagine you started a blog about learning to cook. It makes sense to pick a niche in cooking or kitchen gadgets. This way, you can promote products that fit your content and audience.
Meanwhile, choosing a niche based on audience needs can help you identify profitable areas with less competition. Keep in mind that while this approach can uncover hidden opportunities, you’ll need to evaluate the market to ensure there’s enough demand for your efforts to pay off.
Using affiliate marketing tools like website analytics, social listening, and community insights, you can assess people’s sentiment toward the niche and draw insights to make an informed decision.
2. Join an affiliate program
To make money as an affiliate marketer, you need to promote items that matter to your audience. Ask yourself, “What do my followers care about? What products solve their problems or enhance their lives?” Understanding their needs and preferences is key to choosing the right products to promote.
If you don’t know where to find products or brands to partner with, there are many popular affiliate networks to explore, including:
Another option is to check the websites of businesses to see if they have affiliate programs. Many companies, like the Shopify Affiliate Program, offer these opportunities.
A more direct approach is to contact the owner of a product you like and ask if they have an affiliate marketing program. If they don’t, they might be willing to create one, like giving you a special coupon code to share with your followers.
Remember, affiliate marketing programs have rules you need to follow, so always read the details. For example, your affiliate link will often have a cookie with a set time, and some programs don’t allow pay-per-click ads using the product or company’s name.
3. Select your platform
The next step to starting affiliate marketing is choosing a marketing channel and the types of content to promote on that channel.
Popular affiliate marketing channels include:
- Organic search
- TikTok
- YouTube
Consider choosing a channel you are familiar with and comfortable using. This can help you create better content and keep your audience interested.
When it comes to affiliate marketing content, you can experiment with different formats, including:
- How-to guides
- Top 10 lists
- Product tutorials
- Personal stories
- Comparison charts
- Lifestyle content
Try out various formats to see what works best for your audience. Also, be genuine in your approach because real connections are what convert your audience into affiliate sales.
4. Create great content
As you look for products to promote as an affiliate, consider their fit with the platform and your audience’s needs. Ask yourself:
- Will my audience find this product valuable?
- Does it align with my preferred affiliate channel?
Ensure the product or service is right for the platform you’re using. For example, beauty products and gadgets might do well on visually driven platforms like TikTok and Instagram. But for more complex items like home improvement tools, you might see better results on platforms like YouTube or a blog where you can provide in-depth content.
8 tips for affiliate marketing success
1. Build trust
Among all affiliate marketing strategies, being trustworthy is key. Don’t risk your brand image for any partner or product.
Building trust starts with sharing honest content. If you review a product, give your real opinion based on your experience. The more transparent you are, the more genuine you seem.
Trust is essential in some niches. For example, promoting a high-end camera requires more trust than selling a $20 phone case.
Stick to a few affiliates or only promote products you personally use. People will trust your recommendations more. If your affiliate site focuses on genuine reviews, you’ll build a loyal audience.
2. Create a product tutorial
Making a tutorial for the product or service you’re promoting is another effective way to get people interested.
People often search for guides, like “How to organize a small closet” or “How to build a backyard garden.” By offering a tutorial that addresses their problem and highlights the product’s value, you give customers a compelling reason to purchase the item you recommend.
3. Develop an email list
An email list helps you stay connected with people even after they log out of social media or close their browser.
Consider sending a weekly newsletter to your subscribers that promotes your affiliate partners. Offer something valuable like:
- Free ebooks
- Tips and tricks
- Personal updates
- Fun stories
- Latest news
- Exclusive discounts
If a subscriber replies to your email, make sure to respond. Be consistent with your newsletters, both in frequency and quality. Occasionally, you can include an affiliate product or two.
There’s no strict rule for how often to send promotional emails. Just don’t send them every time you have a promotion, as it might seem spammy and hurt your trustworthiness.
4. Speak with product users
Contextual content adds depth to your reviews and creates a story that readers can connect with. Try interviewing people who use the product or service you’re promoting. You can also write about the brand or the inventor behind the product to provide more insight.
5. Identify relevant search terms
If you’re writing a blog post to promote a product, look up the keywords people might use to search for your content.
Google Ads Keyword Planner can help with this. It’s free, but you’ll need to create an account to use it.
6. Use the product
Trying the product yourself is a great way to show your audience how it works.
You can create a video showing how you use a physical item in everyday situations or explain how to maximize a digital product’s features. Your personal experience adds depth to your content and makes it more relatable.
Unboxing posts are also a hit. If you get the product in the mail, document your unboxing experience. This builds anticipation and excitement, making your audience more likely to try the product themselves.
7. Create your distribution strategy
Once you’ve written your promotional content, take the following steps to get it out there:
- Post your content on forums or online groups related to your niche. It can help you reach people who are already interested in your topic.
- Collaborate with other bloggers or influencers. They can share your content on their affiliate marketing website, helping you reach a wider audience.
- Create a short video teaser for your content and post it on platforms like Instagram, TikTok, or YouTube. This can grab attention and drive traffic to your site.
8. Sort out the legal stuff
Always say when your content has affiliate links. The FTC requires it. Plus, it helps build trust with your readers.
For example, you could say, “This site has affiliate links. We get a commission if you buy through these links, at no extra cost to you. We recommend these products because we use them and find them helpful.”
If you’re unsure how to write a disclaimer for your affiliate website, talk to a legal professional to make sure you get it right.
Affiliate program examples
Explore these popular affiliate programs to learn about various payout models and discover the range of products and services you can promote.
Shopify
Shopify’s affiliate program is designed for creators, influencers, educators, and everyone else interested in endorsing its ecommerce software. It’s free to join—all you need to do is apply.
Once approved, you’ll get a unique link to share with your audience. Each time someone signs up using your link, you earn money.
On average, Shopify Affiliates make $58 for each new user who signs up for a paid plan. The earning potential depends on how well you promote it.
People find the Shopify affiliate program easy to use. It lets you promote a great product, earn money, and provide value to your audience.
Juice Beauty
Juice Beauty is a California-based skin care brand that offers an affiliate program through Rakuten. Juice Beauty affiliates get special deals and discounts, plus earn a 6% commission on all sales. There are no application or membership fees to join.
Frankies Bikinis
Swimwear brand Frankies Bikinis uses Skimlinks, RewardStyle, and ShareASale to manage its affiliate program. It works with social media influencers boasting strong followings using the hashtag #Frankiesgirls. Its partners, or ambassadors as the brand calls them, receive an updated list of active promotions to use and earn cash for successful referrals.
Healthish
Water bottle retailer Healthish grew into a million-dollar brand through affiliate marketing. It collaborates with around 300 creators monthly to promote key offerings such as the WB-1 bottle. Influencers with 100,000 followers or more can apply to join its affiliate program.
Manduka
Yoga brand Manduka offers an affiliate program with various perks for yoga teachers, influencers, and affiliate publishers. Its diverse approach allows Manduka to match partners with programs suited to its specific channels or audiences.
EcoFlow
Smart solar solutions brand EcoFlow works with two different affiliate program partners. Its ambassadors promote items like portable air conditioners and generators and receive a 5% commission on each sale. But with an average order value of $1,000, EcoFlow’s affiliate program can be difficult to profit from quickly.
Good To-Go
Good To-Go is a food brand offering a 10% commission rate and other perks through its affiliate program. It partners with social media influencers in the outdoor living space to develop campaigns targeting campers and backpackers. Due to its niche market, Good To-Go is able to select partners who closely align with its audience, ensuring effective and relevant promotions.
How does affiliate marketing compare to dropshipping ?
Dropshipping means you run your own business. You set up a website, work with a manufacturer, and handle daily tasks. You control the products, prices, and marketing. But you also deal with customer service and other hassles.
Being an affiliate is simpler. You promote other people’s products and earn a commission. No stock, no customer service. It’s easier but you have less control.
Which is better? It depends on what you want. Both are low-risk, low-cost ways to make money. You can even do affiliate marketing for dropshipping stores.
Your costs depend on your marketing plan. Grow at your own pace. Being an affiliate is easier and can be just as profitable.
Kickstart your affiliate marketing journey today
Affiliate marketing can be a great way to make extra money without spending a lot upfront. Although it takes time to find the right network and perfect your strategy, the reward is worth it. From generating passive income to building new relationships, doing affiliate marketing right can bring many benefits to you.
Affiliate marketing FAQ
What does affiliate marketing mean?
Affiliate marketing means earning a commission by promoting a company’s product or service. An affiliate partner gets paid for driving actions like sales, leads, downloads, or signups. The payment can be a percentage of each sale or a set amount for each referral. This way, affiliates make money by helping companies reach their goals.
What are the top affiliate networks?
Top affiliate networks include:
- Affiliate Future
- AvantLink
- AWIN
- CJ
- ClickBank
- FlexOffers
- GiddyUp
- LinkConnector
- Rakuten Advertising
- ShareASale
What is an example of affiliate marketing?
Shopify’s Affiliate Program is a good example of affiliate marketing. After a partner signs up and gets accepted into the program, Shopify gives them a referral link. The partner then shares this link with potential merchants. Every time a merchant signs up for a paid Shopify plan using the link, the partner receives a commission.
What are affiliate links?
Affiliate links are unique URLs that contain the affiliate’s username or ID plus the advertiser’s URL.
Companies offering affiliate programs use these links to record the traffic sent to their website. If a person clicks the affiliate link and buys the endorsed product on the advertiser’s site, the affiliate gets paid.
A critical aspect of using affiliate links is that you need to disclose them. Essentially, the law requires that you must disclose any link or promotion that might result in a commission for you.
How do I start affiliate marketing?
You can begin affiliate marketing by following these steps:
- Pick a niche.
- Choose an affiliate marketing platform.
- Look for suitable affiliate programs.
- Develop valuable content.
- Grow your audience.
- Adhere to FTC rules.
Is affiliate marketing worth it?
The affiliate marketing industry exceeded $8.2 billion in 2023, according to Statista. It’s affordable to begin and involves less risk compared to other online business models.